Alpha Bank A.e. (adr) Stock Earnings Reports

Alpha Bank reported Q1 2026 profit of EUR 182m (EUR 221m normalized). Results were depressed by one-off items: a Voluntary Separation Scheme (VSS) costing EUR 47m (higher participation than guided) and negative income from associates (goodwill write-down at Nexi and a provision in Romania). Underlying business trends are strong: net interest income (NII) rose (up 1% q/q; ~2.2% underlying q/q adjusted for calendar effects), fees increased 29% y/y (and 3% q/q), cost-to-income was 39% (in guidance), and cost of risk was 44 bps (impairments EUR 48m). Performing loans grew double-digit y/y and were +2% q/q to EUR 38.2bn; customer funds increased (including a EUR 5.8bn single-ticket inflow that management expects to be sticky but not materially fee-accretive). Asset quality remains benign: NPE ratio 3.7% with 55% coverage. CET1 fully loaded was 14.7% (15.0% transitional) after RWA growth driven by SRP roll-off, real estate investments, and higher market-making limits. Management reiterated full-year guidance: EUR 950m reported profit and EUR 0.40 EPS (normalized earnings growth of ~11% expected), and flagged EPS accretion from recent M&A (Alpha Trust deal expected to be ~1% EPS accretive on a fully integrated basis in 2027). Capital allocation priorities remain: fund profitable loan growth, grow capital-light fee businesses, maintain progressive distributions (55% payout accrual currently) and retain M&A firepower. Key risks are geopolitical volatility (Middle East) with energy, shipping/logistics, tourism and uncertainty transmission; mitigants include strong fiscal buffers, healthy corporate balance sheets, duration-tilted balance sheet (positive rate sensitivity) and a strategic UniCredit partnership that boosts cross-border product capabilities.